EMCO INDUSTRIES LIMITED

Address: 2nd Floor, Saudi Pak House, 14 - Egerton Road, Lahore.Landmark: Egerton Road, Saudi Pak HouseCity: LahorePhone: +92-42-36371116, 36371117, 36371118, 36371119Fax: +92-42-36368119

Final Project:

Marketing Plan

Submitted to:

Madam Faiza Rehman

Submitted By: Muhammad HABIBULLAH 084 Zahid yousaf 166 Aslam javaid 024 Sharjeel arslan 139

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

LAHORE.

In The name of ALLAH The Most Beneficent & Most Merciful.

Acknowledgements: First of all, we thanks to ALMIGHTY ALLAH who gave

us courage and blessed us in all the tough times to overcome the difficulties and hinder

ness in our way towards the final destination of this project.

I also to please to acknowledge the services of COMSATS Institute to deliver the

students a platform for practical demonstration of their hard work.

We also thankful to our teacher Madam Faiza Rehman for the worthy support &

guidance during this project.

Last but not at least; we are grateful to all the marketing staff of EMCO Industries for

their kindness & providing us with all the relevant and accurate information.

Executive Summary: Quality & style are now the top priorities of the citizens of developed countries. For this purpose EMCO, has taken advantage of this opportunity by providing an innovative range of quality products to its national & international customers. EMCO is committed in providing its customers with nothing but the best quality product. EMCO Industries is the largest tile manufacturer in Pakistan. It has a larges network of dealers. Through its network of dealer EMCO is providing all sort of titles, new invention, new products which are rapidly adding up in product mix of tile industries all are successfully adopted by EMCO. EMCO is providing services to its worldwide thousand of customers. Customers are increasing day by day. EMCO is still the only unit for manufacturing high tension insulators in Pakistan It is manufacturing

high range of Floor and Facing Tiles according to international surface tiles, wall tiles, and ceramic tiles. EMCO is the largest ceramic complex in Pakistan producing over 30,000 tons of ceramics material annually. Project is based on current marketing strategy of EMCO.A full marketing analysis of company including internal factor strength and weakness external opportunities and threats, its competitors, their quality to provide detailed information about its currently market share,growth,and its positioning in customer mind EMCO has still retain a strong market share as compare to its competitors. There is still obvious scope of improvements as threats from competitors due to some technical faults in raw material EMCO has to bear a huge loss. This negligence was due to low involvement of lower level of manager. Marketing strategy, distribution strategy, and marketing strategies have been analyzed to suggest sound recommendations for further improvements

Contents :

Marketing PlanAbout EMCOExecutive SummaryThe ChallengeSituation AnalysisCompany AnalysisCustomers AnalysisCompetitorsCollaborationClimateSWOT AnalysisStrengthsWeaknessesOpportunitiesThreatsMarket SegmentationSegmentAlternative Marketing StrategyDiscountsRe brandingCo brandingSelected Marketing Strategy

(a) Product(b) Price (c) Placement (Distribution)(d) Promotion

Conclusion of ReportRecommendationsAppendix / AnnexureBibliography / ReferencesEvidences

1. About EMCO TILES:Having achieved an enviable position in the field of electric ceramics, EMCO, in 1983

decided to broad-base their manufacturing activities and utilize their long experience in

ceramics by adding an ultra modern plant for the manufacturing of decorative WALL

TILES with an annual capacity of 700,000 square meters.  The entire machinery for the

manufacture of tiles was supplied by world renowned machinery manufacturers from

Germany and Italy.  This plant was commissioned in 1985.

Another plant for Floor Tiles having an annual capacity of 1,000,000 square meters was

commissioned in late 1991.  The machinery and know-how was supplied by SACMI of

Italy and the plant is producing comprehensive range of Floor and Facing Tiles

according to international standards.  In 1996, the need was felt to increase the

production of the Wall Tile and subsequently an agreement was signed with an Italian

Company to supply machinery and equipment to increase the output of the Wall Tile

plant form 700,000 to 1,500,000 square meters per annum.  This expanded facility was

completed in 1997.  Currently the overall production capacity of both plants is 2,500,000

square meters.  EMCO is the largest ceramic complex in Pakistan producing over

30,000 tons of ceramics material annually.

Executive Summary:Director Marketing

General Manager

Regional Manager

Assistant Sales ManagerAssistant Manager

Sales Executive

Area Manager

Distributors

2. The Challenge:

The main challenge faced by EMCO while launching its tiles

products to the market was lack of awareness of general public about its products. Their

aim was to bring quality products according to the customer’s needs & wants. To

achieve this they needed heavy advertisement according to competitors. Selection of

dealer was also a challenge to EMCO. Now a day they hire architects from all cities and

manufacture tiles according to the culture & climate of a region.

3. Situation Analysis

(a) Company Analysis:

Products: High tension insulators

Floor and Facing Tiles

Surface tiles

Wall tiles,

Ceramic tiles.

Mission Statement:

To be a leader in market, we provide quality & superior

products to our customers by learning’s from feedback from our customers to set even

high standard of our products.

To be a company that continuously enhances its superior technological competence to

provide innovative solution to customer’s needs

To be a company that attracts its outsiders customers by creating a friendly culture that

promotes individual growth, and reward on performance.

Culture: EMCO’s management make decision by consulting lower level managers. Employees are cooperative with each other. There is learning enviournment in the whole organization.

Market Share:

EMCO holds a huge market share as compared to its

competitors. Its customers are full satisfied with its quality products. EMCO is holding

10% market share.

(b) Customer Analysis :

Number of Customers: There is difference between customer & consumer.

Customers of EMCO are its distributors. They are geographically scattered. There are

150 dealers of EMCO in Lahore.

Consumers of EMCO are unlimited.

Type of Customers:

There are two types of customers of EMCO.

Local

Inter national.

Local customers can purchase tiles from our display centre or from nearest dealers. inter

national customer can import our products.

Value Driver:

Our best quality & technical specifications are the main value

drivers.

Decision Process:

If there is any problem arises then the Regional Manager

has authority to make decision at his own risk. After the decision, it is referred to specific

department.

(c) Competitors :

Competitors of EMCO are Master Tiles, Shabbier,

Karam, Sonex, & China Tiles.

Market Position :

Master is holding the larger share of market due to its marketing

strategies & managerial operations. After master, shabbier is in the market. EMCO is on

3rd position. China due to its lower prices & lower quality has lowest market share.

Strengths of Competitors:

Strengths of Shabbier:

Awareness of current market situation.

Stable Selling Policy

Extensive Marketing

Better Quality Products as compared to EMCO

Strengths of master:

Best quality products

Continuous Improvements in technology

Larger share of sales in tiles industry

Strengths of China:

Lower prices products

Good technology

Up to date designs

Weaknesses of Competitors :

Weaknesses of Shabbier:

No sign boards for advertisement.

Fewer styles

Force selling

Weaknesses of master:

Different packages for different customers

1 man show selling (customer can purchase only from wholesalers)

No network of Dealers

Cash on Table selling (No facility of future payments)

Weaknesses of China:

Inferior quality

No advertisement

(d) Collaborations :

Joint Venture:

No joint venture with any company. EMCO is an independent company

Partnership:

EMCO has no partnership agreement with any entity.

(e) Climate :

Macro environment:

PEST Analysis:

Political

Factors

EconomicFactors

Social Factors

TechnologicalFactors

Political factors :

Political conditions of a country have great effect on each

and every industry. Major projects & exports are badly affected by these conditions. Like

all other industries EMCO has also to face huge loss due to current political uncertainty.

Terrorism has decreased exports of EMCO. Foreign companies hesitate to invest or deal

with Pakistani companies. Company ultimately has to loose its foreign customers.

Economic Factors :

Economy of company has direct relation with

purchasing. If company has low purchases then it is considered as not prosper. EMCO

purchases raw material in accurate quantity, so, produce goods according to

specifications & best quality. EMCO has accurate production & sale.

Technological Factors :

Technology plays an important role in production &

sale. EMCO is now using update technology for production of Ceramic. Accurate sizes

can be obtained by new technology. EMCO is now producing 12*12 size tiles by new

plant. If any company has to edge over its competitors then it has to made continuous

technological changes.

PEST

Social Factors :

EMCO is producing tiles according to the social interest of

public. It has no drawback to society.

(f) SWOT Analysis:

Strengths of EMCO:

Very good selling network

Grip on market

Stable selling policy

Best quality products according to Inter national standards

No need of polishing of tiles

Fair discount policy for all customers

Display centers for all customers

Weaknesses of EMCO :

No open advertisement

Fewer designs.

Threats :

The major threat to EMCO is from China Company, due to its lower prices. EMCO has

also to reduce its prices if it wants to capture market.

Substitute of tiles (paint) can reduce EMCO’s sales.

Opportunities:

If EMCO installs new plant for production then it can capture huge market.

If EMCO advertise heavily then it can increase its sales volume.

SWOT

Strengths Weaknesses opportunities threats

New designs & feedback on that from public.

4. Market Segmentation:

Segment # 1:

Description:

EMCO targets all level of income groups those want quality product with

reasonable prices as compared to competitors. There is no specification of single target

market.

Percent of sale:

80% sales are made to Pakistani customers. 20% is exported to

foreign countries.

What they want:

Customers of EMCO want innovations in the product as its

competitor China is doing. The availability of tiles is also a major want of customers.

How they use product:

EMCO has made usage of tile so easy. Every consumer can

adopt fixing process himself. EMCO provides leaflets containing instructions for

customers. If any customer fined difficulty then he can contact or personally visit our

customer care centre.

Support requirements:

EMCO provides after sale services to all consumers. If there

is any defect in product then customer has right to replace the product within 3 months.

If a customer claims after three months then replacement is also made to him.

Price sensitivity:

EMCO has set prices according to its all competitors. Prices are fix

for all customers. They don’t vary from customer to customer.

5. alternative marketing strategies:

Discounts:

EMCO provides discounts to its all customers. Dealers can enjoy discount

according to their previous sales. It can be up to 2% to 10%. Consumers who purchase

from out display centre can get discount of 4%.

Re branding:

There is no concept of Re branding in EMCO. Its existing brands are still

in market.

Co branding:

EMCO has no co branding with any company.

6. Selected Marketing strategy:

a) Product:

Brand name:

EMCO

Logo:

Slogan:

EMCO has no specific slogan.

Qualities:

EMCO has received different quality certificates. These are

ISO 9001 Certified.( Quality assurance firm)

UKAS (Quality Management)

Warranty:

EMCO provides no warranty for its products. However customers can

replace within specified period of time.

Packaging:

Different packaging sizes are available at our display centre.

Size Packaging (Meters)

8×8 1

8×12 1.5

10×13 1.5

12×12 1.5

10×10 1.5

b) Price:

Price Strategy:

EMCO sets prices according to the competitors and current market

situation. Its prices are comparatively low as its competitors.

Sale Price:

The sale price of tiles is 390/metre.

Discounts:

Discount rates are different from customer to customer. EMCO provides

discounts to its all customers. Dealers can enjoy discount according to their previous

sales. It can be up to 2% to 10%. Consumers who purchase from out display centre

can get discount of 4%.

Payment:

EMCO provides the facility of future payments to its customers. Different

customers are given different payment duration. Often dealers have time period of

three months.

c) Distribution:

Distribution channels:

EMCO has two channels of distribution. Those are

Distributors and our display centre selling. EMCO has 150 main dealers in Lahore.

Location:

EMCO has strong dealership network. Its dealers are almost in all areas

of Pakistan. Company has three main display centers in Lahore, Karachi, & in

Islamabad.

Motivating the channel:

EMCO has strategy to give awards to its dealers on

their overall performance of sales. There is no concept of commission to dealers in

EMCO. Discount is offered to those dealers as incentive.

Criteria for evaluating the distributors:

There is a specific process for

selection of distributors. Management 1st looks the best dealer then their market

position. Dealers are set on those locations where there is no existing dealer of

EMCO.

d) Promotion:

Advertising:

EMCO has no open advertisement at any media. Only sign boards&

leaf lets are used for advertisement purpose.

Budjet:

The budjet for marketing program was 2 million (Rs) for last month.

Public relationship:

EMCO has strong worthiness among its customers and

overall market due to its quality products. For better relationship EMCO gets

feedback from customers & then formulate strategies according to that feedback.

Promotional programmes:

Due to low advertisement EMCO needs no

promotional programmes. No TV or other events are sponsored by EMCO.

7. Conclusion of report:

Recommendations:

If EMCO increases its budjet for advertisement, hires more

sign boards then it would be the best company in tiles industry. There should be

heavy advertisement by EMCO if it want to capture more market share.

8. Appendix/ annexure:

All annexure are annexed at the end of report.

9. Bibliography/References:

Mr.Usman Sámi Khan Regional Manager Sales

Mr.Tariq Nazeer Sales Officer

Rizwan Ahmad Assistant Manager Sales

Mirza Imran Iftikhar Sales executive

www.emco.com.pk

10. Evidences: